This copy is for your personal non-commercial use only. To order presentation-ready copies of Toronto Star content for distribution to colleagues, clients or customers, or inquire about permissions/licensing, please go to: www.TorontoStarReprints.com

City's capital budget focuses on transit projects

More than half of Toronto's capital spending, next year and over the next 10 years, will be poured into the transit system, according to the city's capital budget released today.

By John SpearsCity Hall Bureau

Tues., Nov. 3, 2009

More than half of Toronto's capital spending, next year and over the next 10 years, will be poured into the transit system, according to the city's capital budget released today.

The city's total capital spending for 2010 will be $2.4 billion - expected to rise to $2.5 billion in each of the next two years.

The capital budget is money spent on long-term items like street-cars or new police stations, rather than day-to-day operating items like salaries or fuel for vehicles.

The operating budget - which deals with day-to-day spending and determines the property tax rate - won't be presented until February.

If spending on roads is combined with spending on the transit system, 68 per cent of the capital budget for big-ticket items will be devoted to transportation projects.

Article Continued Below

Among the items on the city's shopping list:

- Next year Toronto will spend $217.6 million on new subway cars that will hold more passengers - the beginning of a 10-year program to buy a total of 360 new subway cars;

- The city will spend $72 million on new buses, part of a 10-year program to buy 390 new buses.

- Construction of the Sheppard East light rail line will gather speed, with spending of $163 million.

- Plans call for $22.6 million of spending next year on new bike lanes and paths.

- A new radio communications system for police, fire and ambulance services will get $28 million, the first stage of a three-year, $69-million upgrade.

The spending will push up the city's debt load.

But the plan presented by city manager Joe Pennachetti says the cost of servicing the debt will stay within the city's long-standing guideline, which says debt charges must not exceed 15 per cent of the city's tax revenue.

More from the Toronto Star & Partners

LOADING

Copyright owned or licensed by Toronto Star Newspapers Limited. All rights reserved. Republication or distribution of this content is expressly prohibited without the prior written consent of Toronto Star Newspapers Limited and/or its licensors. To order copies of Toronto Star articles, please go to: www.TorontoStarReprints.com